KUALA LUMPUR (April 13): Oil and gas services provider Daya Materials Bhd has terminated the joint venture agreement (JVA) entered into between Daya Sheffield Sdn Bhd and Singapore-based human capital management and recruitment solutions provider Connect Energy Services Pte Ltd.

In a filing with Bursa Malaysia today, the company said the JVA dated Sept 11, 2013 that was entered into between Daya Sheffield — a joint venture company of Daya Materials’ subsidiary Daya OCI Sdn Bhd — had been terminated by Daya Sheffield via a notice of termination of the JVA given to Connect Energy.

“The termination of the JVA is not expected to have any material effect on the earnings, net assets, share capital, gearing and substantial shareholders' shareholdings of Daya Materials for the financial year ending Dec 31, 2015,” read the announcement.

In Sept 2013, Daya Materials (fundamental: 0.55; valuation: 1.2) had said the JVA was for the purpose of undertaking the provision of manpower services to Songa Offshore Malaysia Sdn. Bhd, and that the venture was expected to provide reasonable returns to both Daya Sheffield and Connect Energy.

The JVA was also expected to contribute positively to the future profitability and cash flow of Daya Materials, as well as the stability of its future income stream, it said.

Daya Materials’ shares closed up 0.5 sen or 3.85% today to 13.5 sen, with a market capitalisation of RM214.74 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)